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Earn Your Leisure cover image

Study Hall: Understanding Stock Options Trading: An In-Depth Breakdown

Earn Your Leisure

NOTE

Understanding Calls and Puts in Stock Trading

In stock trading, a 'call' indicates a prediction that the stock will move upwards, while a 'put' suggests a belief that the stock will move downwards. Traders need to consider factors like the strike price, which can range from $10 to $100 of the actual stock price. Making accurate predictions can lead to financial gains based on the movement of the stock price within a specific timeframe.

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